Anheuser receives takeover bid

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In a letter to Anheuser Chief Executive August Busch IV, InBev CEO Carlos Brito sought to quell concerns about the loss of an iconic American brand, the departure of its headquarters from St. Louis, and U.S. brewery closings.

It also made overtures to Modelo, stressing that a combined InBev-Anheuser would have great opportunities for marketing the Mexican company's beers, such as Corona, around the world.

There had been speculation that Anheuser might seek to buy the rest of Modelo as a way of fending off an InBev takeover bid. But in an interview last week, Modelo CEO Carlos Fernandez said that based on what he knew at that time, he thought the company would retain its independence over the next year.

Wachovia's Feeney estimated that InBev, known for aggressive cost-cutting, could find about $1.2 billion a year in savings.

"InBev would focus its efforts on streamlining the U.S. beer giant, a possibility which might not sit well with Anheuser distributors," Feeney said in a research note. "On top of the distributor piece, the highly regulated nature of the beer industry could pose other deal difficulties."

"Although with a bid in hand we'd rather sit this one out altogether than force our view, which is that the stock has fundamental value in the mid-$50's and a deal still seems uncertain."

As of March 31, Anheuser had about 714 million shares outstanding. In the past 52 weeks, the shares have traded in a range of $45.55, which it hit in March, to $58.56.

(Additional reporting by Jessica Hall in Philadelphia and Muralikumar Anantharaman in Boston; Editing by Gary Hill and Braden Reddall)

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